Austria Vs Germany: Which Country Has A Higher Standard Of Living?

Germany and Austria are neighbouring countries in Central Europe with a long history of cultural, political, economic, and familial ties. While they share a border and a past, there are also significant differences between the two nations. Austria is a small, landlocked country with around 8.7 million inhabitants, while Germany is larger and has a population of about 83.2 million. Both countries have impressive landscapes, with Germany's topography ranging from high Alps to low-lying northern plains, and Austria's terrain consisting mostly of mountains, with the Alps rising to nearly 3,800 meters at the Großglockner peak.

In terms of history, Germany was unified in 1871, ending a period of fragmentation, while Austria was part of the Austro-Hungarian Empire until the end of World War I. During World War II, Germany annexed Austria, marking the beginning of its expansionist policies. After the war, both countries were divided into zones of occupation and later emerged as republics. Austria maintained its neutrality throughout the Cold War, while Germany was split into two states. Today, both countries are members of the European Union and have close relations.

When it comes to language, German is the official language of both Germany and Austria, but there are variations in dialect and accent. Austrian German is more lilting and similar to Bavarian German, while German German is more crisp. There are also differences in everyday language use, such as greetings and common phrases. Austrian cuisine also has its own terminology, which is protected by law.

In terms of lifestyle and culture, Austrians are generally considered more outgoing and cheerful, while Germans can be more formal and distant. Austrians also tend to use the informal du when addressing others, whereas Germans favour the formal Sie. Both countries share traditional Germanic costumes, such as Lederhosen and Dirndl, and similar styles of cuisine, with Bavarian cooking being particularly close to Austrian. However, Austrian food often incorporates influences from Eastern European and Italian cooking.

While Germany has a larger economy and plays a more assertive role in global affairs, Austria also has a strong industrial base and is known for sectors such as machinery, agriculture, tourism, and finance. The average salary is slightly higher in Austria, but the cost of living in both countries is relatively affordable compared to other European nations.

Cost of living

The cost of living in Austria is estimated to be between 4% and 10% more expensive than in Germany. However, rent prices in Austria are around 0.5% cheaper than in Germany. The average cost of living in Austria is $1840, while in Germany, it is $1671.

Food

Food in Austria is estimated to be between 2.4% and 14% more expensive than in Germany. A basic meal with a drink at an inexpensive restaurant will cost 3.7% more in Germany than in Austria. Groceries are also estimated to be between 9.4% and 18.6% more expensive in Austria.

Housing

Housing in Austria is estimated to be between 2.3% and 13% cheaper than in Germany. A one-bedroom apartment in a big city like Vienna will cost approximately €400 per month, compared to €700 per month in Berlin.

Transportation

Transportation in Austria is estimated to be between 11.2% and 14% cheaper than in Germany. A monthly public transit pass will cost 11.2% less in Austria than in Germany.

Childcare

Childcare in Austria is estimated to be 11.1% more expensive than in Germany.

Entertainment and Sports

Entertainment and sports in Austria are estimated to be between 1.7% and 13% cheaper than in Germany. A domestic/local beer (1 pint) will cost 1.7% more in Austria than in Germany.

Clothing

Clothing in Austria is estimated to be between 4.3% and 22% more expensive than in Germany.

Education

Austria and Germany both have highly regarded education systems, but they differ in several ways. Here is a comparison of the education systems in Austria and Germany:

Austria:

• Austria has a free and public school system, and nine years of education are mandatory.
• After four years in elementary school ("Volksschule"), students can attend a lower secondary school ("Mittelschule") or grammar school ("Gymnasium") for four years.
• Students who want to pursue an apprenticeship can go to a polytechnic institute ("Polytechnische Schule") for a year, followed by three years at a vocational school ("Berufsschule").
• To enter a university, students need to complete four to five years at an institution of higher education ("Höhere Schule") or a vocational school with a higher education entrance qualification ("Berufsberebende Höhere Schule").
• The Federal Ministry of Education is responsible for funding and supervising primary, secondary, and tertiary education.
• Private schools, mostly run by the Roman Catholic Church, account for about 8-10% of schools in Austria. They have a reputation for more discipline and rigor and are considered more elite.
• Historically, education in Austria was the task of the Catholic Church. The Habsburg Monarchs Maria Theresa and Joseph II made priests civil servants and educators, responsible for teaching modern religious views, ethics, civic virtues, and obedience to the state.
• Mandatory primary education was introduced by Empress Maria Theresa in 1774, requiring all children from ages six to twelve to attend school.
• The history of the Austrian education system after World War II reflects an attempt to transform higher education from an entitlement of the upper classes to a more equitable system accessible to all social classes.
• The School Act of 1962 abolished the previous "two-track" system, which streamed students at age ten into different educational paths based on their social background.
• Today, all state-funded schools are open to children regardless of birth, gender, race, status, class, language, or religion.
• The quality of state schools in Austria is considered very high compared to other European education systems.

Germany:

• Education in Germany is primarily the responsibility of individual German states ("Länder"), with the federal government playing a minor role.
• Formal education is compulsory for children ages six to fifteen.
• Germany's secondary education is divided into lower and upper levels. Lower-secondary education prepares students for upper-secondary education, which usually leads to vocational training.
• German secondary education consists of five subtypes of schools: Gymnasium, Realschule, Hauptschule, Gesamtschule, and Sonderschule.
• The Gymnasium prepares students for higher education and concludes with the final examination, Abitur, after grade 12 or 13.
• Realschule and Hauptschule prepare students for vocational education and conclude with final examinations after grade 10.
• Gesamtschule is a less common comprehensive school option, and Sonderschule caters to students with special educational needs.
• Germany is known for its vocational training model, the "Ausbildung" (apprenticeship), with about 50% of school leavers entering this path.
• Historically, Lutheranism influenced German education. Martin Luther advocated for compulsory schooling so that people could read and interpret the Bible independently.
• During the 18th century, the Kingdom of Prussia was among the first countries to introduce free and compulsory primary education for eight years.
• After World War II, the Allied powers eliminated Nazi ideology from the curriculum and implemented their own educational systems in their respective occupation zones.
• Multi-state agreements ensure that basic educational requirements are met by all state school systems, and graduation certificates are recognized across states.
• German universities are recognized internationally, and the country has a strong focus on research.
• The oldest universities in Germany include Heidelberg University (established in 1386), Cologne University (1388), Leipzig University (1409), and Rostock University (1419).
• Germany's universities are predominantly public institutions with low tuition fees.
• The dual education system combines practical and theoretical education but does not lead to academic degrees. It is very popular in Germany.
• There are two types of tertiary institutions: Universitäten (universities) and Fachhochschulen (universities of applied sciences). Universitäten have the right to confer doctorates, while Fachhochschulen focus on applied science and employability.

In summary, while both Austria and Germany offer high-quality education, their systems differ in structure, management, and the balance between academic and vocational pathways. Austria's education system has undergone reforms to promote equality and accessibility, while Germany's system is more decentralized, with each state having its own unique features.

Employment

Austria has a well-developed market economy with a skilled labour force and a high standard of living. The country's economy is closely tied to other EU economies, especially Germany's, but also the US, its third-largest trade partner. Austria's economy features a large service sector, a sound industrial sector, and a small but highly developed agricultural sector.

In 2023, the total number of people in employment in Austria was 4,483,000, with an employment rate of 74.1% for persons aged 15 to 64. The same year, the part-time employment rate was 30.9%, with 50.6% of women and 13.4% of men in part-time employment. The average number of unemployed people in 2023 was 240,900, resulting in an unemployment rate of 5.1%. The youth unemployment rate (15 to 24 years old) was 10.4%, while the unemployment rate for elderly people (55 and above) was 4.1%. Non-Austrian citizens were particularly affected by unemployment, with a rate of 9.6%. When comparing Austrian provinces, Vienna had the highest unemployment rate at 9.6%, while Salzburg had the lowest at 3.0%.

In 2022, the Austrian labour market was characterised by a sharp increase in companies' demand for staff. The gradual phasing out of COVID-related restrictions brought about a rapid and widespread recovery in the accommodation and catering sector. The unemployment rate stood at 6.3% according to national calculations and less than 5% according to international definitions. The average unemployment rate for young people (up to 25 years of age) was 5.4%, while unemployment among the older generation (55 and above) was 8.5%. The unemployment rate for foreign nationals was significantly higher than the Austrian average, at 9.1%.

In terms of employment costs, payroll contributions by the employer and employee in Austria are approximately 21.1% and 17.15%, respectively. The employer's contributions include national health insurance (3.8%), accident insurance (1.2%), retirement pension (12.55%), unemployment insurance (3%), and insolvency guarantee funds contribution (0.55%). Employees contribute to national health insurance (3.9%), retirement pension (10.25%), and unemployment insurance (3%). Income tax in Austria ranges from 0% for income lower than EUR 11,000 per year to up to 55% for income over EUR 1,000,001 per year, with a wide bracket at 50%.

When compared to Germany, Austria has a lower university admission rate, making it more challenging for students to gain acceptance into Austrian universities. Additionally, Austria imposes restrictions on the number of working hours for international students, with limits of 10 hours per week for Bachelor's degree students and 20 hours per week for Master's students. In contrast, Germany offers simplified regulations, allowing all international students to work part-time for 240 days or full-time for 120 days per year.

Regarding post-graduation employment opportunities, Germany offers excellent job prospects for international students, with a relatively high employability rate. On the other hand, Austria faces challenges in this area, with about a third of international students deciding to leave the country within three years of graduating. The language barrier also plays a role, as German language proficiency is no longer an essential requirement for finding a job in Germany, making it more accessible for foreigners.

Language

Austria and Germany share a common language, German, which is also spoken in Liechtenstein, Switzerland, Luxembourg, and eastern Belgium. However, there are distinct differences between Austrian German and Standard German. Austrian German is the official language of Austria, used in education, media, and administrative communications. It is mutually intelligible with Standard German, and speakers of the two languages can generally understand each other. However, there are differences in accent, vocabulary, and some minor grammatical differences.

Austrian German has a softer and more melodic tone than Standard German. It is also influenced by the Bavarian dialect and Slavic languages like Slovenian and Czech. The vocabulary differs in some key ways, including how to greet someone, refer to a tomato, or order a coffee. For example, in Austria, you would say "grüß gott" or "servus" to greet someone, whereas in Germany, you would say "hallo" or "guten tag".

There are also grammatical differences between Austrian German and Standard German. For instance, in Austrian German, the past tense is formed differently, with some verbs using "sein" ("to be") instead of "haben" ("to have"). Additionally, Austrian German uses different diminutives, with "-erl" or "-el" added to the end of words instead of the Standard German "-chen" or "-lein".

The dialects within Austria can also vary greatly, with the Viennese dialect being particularly challenging for German speakers to understand. The rural west of the Austrian Alps also has a distinct sound compared to the Viennese.

In terms of education, if you are planning to study in Austria, proficiency in German is required as most classes are taught in the language. In contrast, many universities in Germany offer English-taught programs, making it a more accessible option for international students who do not speak German.

Food

Austrian and German cuisines are closely related, with both diets being rich in meat, potatoes, and pastries. However, there are some distinct differences between the two.

Austrian cuisine varies across the country, with each state having its own independent regional traditions. It shares similarities with its neighbouring countries in Central Europe, particularly Hungary, Bavaria, Bohemia, and Northern Italy. Austrian food is known for its pastries, such as the Kaiserschmarrn, the Apple strudel, the Tafelspitz, and the Wiener schnitzel. Breakfast is usually of the "continental" type, consisting of bread rolls with either jam or cold meats and cheese, accompanied by coffee, tea, or juice. A mid-morning or mid-afternoon snack, called a Jause, consists of a slice of bread topped with cheese or ham. A more substantial version, called a Brettljause, is akin to a British "ploughman's lunch" and is served on a wooden board. Austrian cuisine has many different sausages, and the country is also known for its cakes and pastries.

German cuisine, on the other hand, can be summed up in two words: "pork and potatoes". Pork is commonly served as a loin ("braten"), ham, a smoked knuckle ("Schweinhaxe"), or Schnitzel with various toppings. Dumplings, either made of bread, potato flour, or mixed with liver, are also common. Meals are usually served with a small salad. German sausages are legendary, and the country has over 40 varieties of these grilling sausages. German food also includes Sauerkraut, which is thinly-cut cabbage that is placed in a jar and allowed to ferment. It is often served with bacon. German bread and pretzels are also well-known and widely consumed.

While there are some similarities between Austrian and German cuisines, there are also some distinct differences. Austrian cuisine varies more across the country and is influenced by its neighbouring countries, while German cuisine is more uniform and centred around pork and potatoes.

Frequently asked questions